How to use basic function of Financial Calculator

I have learned some basic function of the financial calculator recently and it is very useful for those who want to know the future payout with certain interest rate in particular of times. It is hard to explain but with this calculator, you might come out some magic figure for your retirement plan.

Ok, there is few buttons in the top of the calculator is a basic function which we will use quite frequent for the calculation.

N = Number of Years
I/YR = Interest rate per year
PV = Present Value
PMT = Payment
FV = Future Value

Let's start with the easy example as below:-

1. Adam received RM7,000 as a birthday present. Adam plans to invest that money for eight years at 10% interest. How much does Adam has at the end of the eight years?

Well, in the question, you already have some clues like
PV = RM7,000
N = 8
I/YR = 10

In this question, you are ask to find the FV.

Step 1: Key-in the amount of PV (7,000) with negative sign (because you are credited your money) and press the PV at the top center.

Step 2: Key-in the number of year (8) and press the 'N' button at the top left.

Step 3: Key-in the interest rate (10) and press the 'I/YR' button at the top second left.

Note: Step 1 - 3 can be key-in whichever first.

Step 4: Press the 'FV' at the top right and you will get the answer.

The answer is RM15,005.12



Here another example:

2. Jamal wants to buy a car that he estimates will cost RM25,000 in five years. How much must Jamal invest now, at 10% interest, to have RM25,000 in five years?

PV = ?
FV = RM25,000
I/YR = 10
N = 5

With 3 clues you might get the answer for PV which is RM15,523.03. Jamal need to invest RM15,523.03 and 5 years later with the interest of 10%, he will get the RM25,000.00